A rental property is more than its rent.
Look beyond gross income with cash flow, cap rate, cash-on-cash return, and debt-service coverage.
A good place to start.
Rent received is not the same as profit. Vacancies, operating bills, financing, and capital repairs all compete for the same cash. Use these calculators to organize a first-pass analysis and identify the assumptions that deserve more investigation.
- Supported market rent and realistic vacancy
- Taxes, insurance, repairs, and management quotes
- Actual loan terms and annual debt service
- Purchase costs, immediate repairs, and cash reserves
How these tools fit together
Start with the itemized rental expense budget to separate annual and monthly bills and test vacancy scenarios. Use cash flow for a quick summary, cap rate for income against value, cash-on-cash for income against upfront cash, and DSCR for annual debt coverage. These are complementary views; none captures every tax effect, resale outcome, or property-specific risk.
Rental cash flow
Estimate net operating income and monthly cash flow after vacancy, recurring expenses, debt payments, and a capital reserve.
Cap rate
Calculate capitalization rate from annual NOI and property value, or estimate the value implied by a target cap rate.
Cash-on-cash return
Compare annual pre-tax cash flow with the down payment, acquisition costs, repairs, and reserves you commit upfront.
DSCR
Measure annual net operating income against debt service and explore debt capacity at a chosen coverage target.
Rental property expense
Budget taxes, insurance, management, repairs, utilities, vacancy, and capital reserves; compare cash flow under five occupancy scenarios.
The good-to-knows about rental investing.
Start with the question on your mind. Every guide comes with practical examples.
Rental investingCap rate explained: calculate it and understand what it leaves out
Learn the NOI-to-value formula, reverse it for a target value, and see why a higher cap rate is not automatically a better investment.
Read the guideRental investingCash-on-cash return vs. cap rate: why the numbers differ
Compare two rental investment metrics with a worked example, including financing, upfront cash, and a leverage downside scenario.
Read the guideRental investingDSCR explained: measure rental income against debt service
Calculate NOI-based debt-service coverage, test income changes, and distinguish the ratio from lender-specific residential DSCR methods.
Read the guideRental investingRental cash flow vs. profit: follow the money before buying
Build a rental property cash-flow worksheet from scheduled rent, vacancy, operating costs, debt service, and capital reserves.
Read the guideRental investingRental property expense budget: avoid missing bills and double counts
Build a rental budget from tax, insurance, management, repairs, vacancy, debt, and reserves, then test weaker occupancy.
Read the guideRental investingHow to budget rental vacancy and capital reserves without double counting
Separate rent loss, routine repairs, major replacements, and cash reserves in a rental budget, with a roof and vacancy example.
Read the guideQuestions about rental investing
Which return metric is best?
Use several. Cap rate ignores financing, cash-on-cash focuses on your cash investment, cash flow shows the operating surplus after debt, and DSCR compares operating income with debt payments.
Are capital reserves part of NOI?
Definitions can differ. RentWise shows recurring operating costs before debt as NOI and subtracts your separate capital reserve afterward when estimating spendable cash flow. Check how a lender defines its own metric.
What is a good cap rate or DSCR?
There is no universal target. Property condition, local market risk, lender definitions, financing, and your investment objectives all matter. Compare properties using consistent assumptions and obtain local professional advice for a purchase.